Waha Capital Q2 profit surges 38.5% on investments and assets management businesses

Abu Dhabi Securities Exchange-listed Waha Capital reported a 38.5% increase in its second-quarter net income. Reuters

Waha Capital, which counts Mubadala Investment Company among its shareholders, reported a 38.5 per cent year-on-year rise in the second-quarter net profit, boosted by higher income from its private investments and asset management businesses.

Net profit for the three months to the end of June climbed to Dh132.4 million, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Total income for the period rose 7.7 per cent to Dh306.5m as profit from private investments advanced 77.4 per cent to Dh162m, while asset management income grew by 53 per cent year-on-year to Dh26.7m.

Waha's profit for the first six months of the year also surged 31 per cent to Dh239.7m, largely driven by the company's successful exit of NPS Holdings in June. The company's balance sheet remains robust with a strong level of cash realisation and consistent performance from a number of business segments, Waha said.

“We have a good balance between our private investments and asset management businesses and good visibility on cash flows,” Michael Raynes, chief executive of Waha Capital, said. “To manage risk, we have increased liquidity across our investments. We now benefit from diversified exposure to listed securities, through our asset management funds and listed investments, including AerCap and NESR,” he said.

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The company, which is 15 per cent owned by Mubadala, in June this year acquired a 5.8 per cent stake in National Energy Services Reunited Corporation as part of its exit from NPS Holdings. The formation of NESR, the only Nasdaq-listed national oilfield services company in the Middle East and North African region, as an operating entity was completed in June with the 100 per cent acquisition of NPS Holdings and Gulf Energy company for a total consideration of about $888m (Dh3.26 billion).

Waha said its operating cash flow for the first half of 2018 came in at Dh679m, reflecting cash generation from activities on AerCap and NPS in which it had held 20.62 per cent stake. Its total income for the period grew by 12.3 per cent year-on-year to Dh618.7m, with return on average equity reaching 7.2 per cent.

The company's total assets climbed 1.8 per cent to Dh11.5bn from the end of last year, it said.

"In recent years, we have increased the proportion of liquid assets in our investment portfolio and enhanced the company's ability to generate healthy cash flows," said Salem Al Noaimi, chairman of Waha Capital.

“Waha Capital is well positioned to make additional direct investments, focusing on sectors where we have built significant expertise. The company is also taking our attractive offering to third-party investors, both for direct co-investment opportunities and for our award-winning asset management business,” he said.